Financial sophistication in the older population
Annamaria Lusardi (),
Olivia Mitchell and
No 2012/08, CFS Working Paper Series from Center for Financial Studies (CFS)
This paper examines data on financial sophistication among the U.S. older population, using a special-purpose module implemented in the Health and Retirement Study. We show that financial sophistication is deficient for older respondents (aged 55+). Specifically, many in this group lack a basic grasp of asset pricing, risk diversification, portfolio choice, and investment fees. Subpopulations with particular deficits include women, the least educated, persons over the age of 75, and non-Whites. In view of the fact that people are increasingly being asked to take on responsibility for their own retirement security, such lack of knowledge can have serious implications.
Keywords: Financial Knowledge; Older Population; Question Framing; Male and Female Differences; Retirement Security (search for similar items in EconPapers)
JEL-codes: D91 G11 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-age and nep-dem
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Working Paper: Financial Sophistication in the Older Population (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cfswop:201208
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